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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: brunn who wrote (71515)	3/8/2001 6:28:23 PM
From: Doug	Read Replies (1) \| Respond to of 99985

brunn: The Tech sector is in a recession. A further drop of the NAZ to 1800 may be in the works. See:http://finance.yahoo.com/q?s=^DJI&d=5y&y=on

To: brunn who wrote (71515)	3/9/2001 12:34:19 AM
From: Rob S.	Read Replies (2) \| Respond to of 99985

The divergence between the valuations of the NAZ and the non cap weighted broad market reached seven standard deviations this time last year. It has converged to about equal. That was the largest divergence in the NAz's history. Each time in the past that the divergence reached over 5 std. deviations the NAZ swung to the other extreme and became undervalued relative to the broad index. It doesn't seem possible given continued vitality of worldwide markets and the newly emerging technologies, but then again history has a way of repeating itself.